Privately Speaking: Neuberger's specialist focus

As well as $17.8 billion in private investment portfolios, Neuberger Berman has $4.4 billion in secondaries, $4.8 billion in co-investments and a further $1.5 billion in private debt.

Perhaps more niche, however, is the expertise it has developed through its Specialty Strategies, which account for $7.2 billion.

These are made up of $4.6 billion in asset management stakes and a further $1.7 billion in healthcare royalties. Consumer brand licensing and European merchant banking add a further $861.6 million, with last year’s acquisition of UK menswear brand Ben Sherman a notable purchase.

Anthony Tutrone says that strong recent growth in both secondaries and healthcare royalties has stemmed from client demand for high cash yields and strong total return, through products that could give a very low correlation to the economy or to public markets.
The group entered the healthcare royalties sub-sector after the global financial crisis.

He recalls: “After the crisis, our secondaries team was looking at illiquid side pockets of hedge funds and saw that many of them had healthcare royalty transactions in there.

“After doing several transactions in the secondaries market, we recognised that this was a good business and that we should be in it on the primary side too.”

Joana Rocha Scaff says that recognising areas where they had the expertise to build teams has been key to the recent organic growth. “Alongside customised accounts, asset management firms and private debt, healthcare royalties has been an important growth area.”